EXPLANATORY STATEMENT
Veterans’ Entitlements (Delayed Lodgment of Claims for Pension Bonus) Guidelines 2007
Summary
Under subsection 45UK(6) of the Veterans’ Entitlements Act 1986 (the Act), the Repatriation Commission (the Commission) is given the power to make guidelines setting out special circumstances for the purposes of subsection 45UK(5). The effect of these guidelines is to indicate (without doing so exclusively) special circumstances that may be sufficient for the Commission to determine that a person’s claim for pension bonus that is lodged after that person’s claim for age service pension, partner service pension or income support supplement is taken to have been made at the same time as the pension claim.
The intention of these guidelines is to specify the circumstance where a person makes a claim for pension bonus within two years of their pension claim due to a failure, either by the Secretary of the Department of Veterans’ Affairs (the Secretary) or by the person, to meet the requirements for claims in subsection 45UK(1) of the Act. However, this circumstance is not intended to fall within the ambit of “special circumstances” if the person knowingly gives the Secretary incorrect information and this is the reason why the Secretary does not invite the person to make a claim under subsection 45UK(3) of the Act.
These guidelines are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background
The Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007 added into the Act subsections 45UK(5) and (6) to enable greater flexibility with regard to claims for pension bonus. Under the existing section 45UK of the Act, a claim for pension bonus by a person must either be attached to a proper claim made by the person and lodged together with it or, if the person’s claim for pension is made on a form which does not require the person to indicate their membership of the pension bonus scheme and the Secretary is aware of their membership, made in accordance with an invitation that the Secretary is required to offer to the person under subsection 45UK(3) of the Act.
The changes made by the new subsections 45UK(5) and (6) give the Commission the discretion, if satisfied that special circumstances exist in relation to the lodgment of a person’s claim for pension bonus, to deem that the person claimed pension bonus at the same time as his or her claim for pension. New subsection 45UK(6) enables the Commission to make guidelines for what constitutes “special circumstances” for this purpose.
Explanation of Provisions
Section 1 states the name of the instrument.
Section 2 states that the instrument commences on 1 January 2008. This means that the instrument will have effect on and from that date.
Section 3 defines certain terms used in the Guidelines.
Section 4 contains the guidelines for when special circumstances apply in relation to the lodgment of a person’s claim for pension bonus. There are two circumstances that are specified.
The first circumstance is intended to apply where the person lodges a claim for pension bonus within two years of their pension claim and the Secretary should have invited, but did not invite, the person to make the claim for pension bonus according to subsection 45UK(3) of the Act because the person’s pension claim was made in accordance with a form that did not require the claimant to disclose whether the person was a registered member of the pension bonus scheme or the corresponding scheme under Part 2.2A of the Social Security Act 1991. However, this circumstance is not a “special circumstance” for the purposes of paragraph 45UK(5)(c) of the Act if the invitation was not offered to the person because the person knowingly gave the Secretary incorrect information that led the Secretary to conclude that the making of the invitation would be inappropriate.
The second circumstance is intended to apply where the person lodges a claim for pension bonus within two years of their pension claim and the person’s pension claim was made in accordance with a form that did require the claimant to disclose whether the person was a registered member of the pension bonus scheme or the corresponding scheme under Part 2.2A of the Social Security Act 1991 and the claimant did not disclose that they were a member and the Secretary did not seek disclosure of that information before granting the claim for pension.
Consultation
The Department of Families, Housing, Community Services and Indigenous Affairs was consulted during the preparation of this instrument. This was done to ensure a co-ordinated and consistent approach to the treatment of claims for pension bonus under both the Veterans’ Entitlements Act 1986 and the social security law.
This instrument is beneficial to persons who are members of the pension bonus scheme because it allows more flexibility in relation to their lodgment of claims for pension bonus. Public consultation was therefore seen as unnecessary.
Business Cost Calculator Figure
This instrument does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure. This instrument is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact. It is not expected that any compliance costs will be incurred by business as a result of the effect of this instrument.
Overview
The Veterans’ Entitlements (Delayed Lodgment of Claims for Pension Bonus) Guidelines 2007 were enacted under the Veterans’ Entitlements Act 1986, which was amended by the Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007. The primary aim of these guidelines was to address the problem of delayed claims for pension bonus by providing more flexibility to the Repatriation Commission in determining when a claim for pension bonus should be considered as lodged concurrently with a claim for age service pension, partner service pension, or income support supplement. The guidelines specify that the Commission can deem a pension bonus claim to have been made at the same time as a pension claim if special circumstances exist, such as when the claimant lodges the pension bonus claim within two years of the pension claim due to a failure by the Secretary of the Department of Veterans’ Affairs or the claimant to meet certain requirements.
These guidelines are a legislative instrument created under the Legislative Instruments Act 2003 and were developed with input from the Department of Families, Housing, Community Services and Indigenous Affairs to ensure consistency in the handling of pension bonus claims. The guidelines aim to benefit members of the pension bonus scheme by allowing them more flexibility in lodging their claims, without necessitating a regulatory impact statement or incurring significant compliance costs for businesses.
Scope and Application
The Veterans’ Entitlements (Delayed Lodgment of Claims for Pension Bonus) Guidelines 2007 applies to individuals who are members of the pension bonus scheme under the Veterans’ Entitlements Act 1986 and are seeking to make a claim for a pension bonus. The guidelines provide flexibility for such individuals in the event that they lodge their claim for pension bonus after their claim for age service pension, partner service pension, or income support supplement, but within two years of the latter claim. The guidelines allow the Repatriation Commission to deem the pension bonus claim to have been made at the same time as the pension claim if certain special circumstances are present. The guidelines do not apply if the delay in lodgment was due to the individual knowingly providing incorrect information to the Secretary of the Department of Veterans’ Affairs. The guidelines are intended to provide clarity and guidance to both individuals and the Department in the processing of pension bonus claims. The scope of the guidelines is limited to the Commonwealth of Australia and does not extend to state or territory jurisdictions. The guidelines do not establish any new exclusions, exemptions, or thresholds beyond those already specified in the Veterans’ Entitlements Act 1986. The guidelines may be amended or extended through subordinate instruments made under the Legislative Instruments Act 2003.
Key Provisions
The Veterans’ Entitlements (Delayed Lodgment of Claims for Pension Bonus) Guidelines 2007 (the Guidelines) provide a framework for determining when a claim for pension bonus may be considered as lodged concurrently with a claim for age service pension, partner service pension, or income support supplement, despite being submitted after the initial pension claim. Section 4 of the Guidelines specifies the special circumstances under which a claim for pension bonus, lodged within two years of the pension claim, may be treated as if it was made simultaneously with the pension claim. The first circumstance applies when the pension claim form did not require the claimant to disclose their membership of the pension bonus scheme, and the Secretary did not invite the claimant to make the pension bonus claim (subsection 45UK(3) of the Act) (section 4(1)(a) of the Guidelines). The second circumstance applies when the pension claim form did require the disclosure of membership, but the claimant failed to disclose this information, and the Secretary did not seek this information before granting the pension claim (section 4(1)(b) of the Guidelines). Notably, these special circumstances do not apply if the claimant knowingly provided incorrect information to the Secretary, leading to the failure to invite the pension bonus claim (section 4(1)(c) of the Guidelines).
The Guidelines impose obligations on both the claimants and the Secretary to ensure proper disclosure and lodgment of pension bonus claims. Claimants must accurately disclose their membership status in the pension bonus scheme when required to do so on the pension claim form. The Secretary, on the other hand, has the responsibility to invite claimants to make pension bonus claims where appropriate, based on the information provided or sought. Furthermore, the Secretary must adhere to the criteria set out in the Guidelines when determining whether special circumstances exist that would warrant the concurrent treatment of pension bonus claims.
Breach of the obligations outlined in the Guidelines may result in the pension bonus claim being denied if it is found that the special circumstances do not apply. There are no specific penalties or consequences mentioned for the breach of these guidelines. However, the denial of a pension bonus claim due to non-compliance with the special circumstances criteria could lead to financial loss for the claimant. It is essential for both claimants and the Secretary to understand and comply with the Guidelines to ensure that pension bonus claims are appropriately assessed and processed.